Welcome to the latest edition of This Week in Pensions! This week, we’ve gathered stories about a pension bill veto in California, the race for the Governor in Alaska, developments in pension legislation in Michigan, and more. This is the news you need to know in the fight for a secure retirement.
California Governor Vetoes Firefighter Pension Bill, Telework Bill
After California lawmakers and labor advocates overwhelmingly approved Assembly Bill 1383, Governor Gavin Newsom vetoed the legislation earlier this week that would have enhanced pension benefits. The bill would have also lowered the retirement age for police officers, firefighters, and other public safety employees.
AB 1383 would have lowered the age from 57 to 55 and allowed public employers and unions to negotiate pension formulas of up to 3% of final compensation for each year of service. Workers hired under California’s Public Employees’ Pension Reform Act (PEPRA) have long attributed inadequate retirement benefits for physically demanding public-safety careers to the inability to recruit and retain a robust public safety workforce.
The bill received strong support from police and firefighter organizations, and had bipartisan support in the California Legislature. In the weeks since the bill passed, hundreds of first responders rallied at the State Capitol to urge Governor Newsom to approve the measure.
Newsom stood behind his decision to veto AB 1383, claiming the bill would reverse previous pension reforms and increase costs for state and municipal governments. He added in a press statement that, “By widening the retirement benefit gap between safety members and non-safety members, this measure invites future changes that would expose our retirement system to additional risks.”
He also vetoed AB 1729, a union-supported bill that aimed to ease return-to-office rules for state workers who telecommute and would have required California’s state agencies to provide detailed written justifications when mandating in-person work.
Pensions Remain Top of the Voters’ Minds in Alaska
A new poll from the American Association of Retired Persons (AARP) reveals that Alaska’s voters age 50 and older could play a major role in the 2026 elections–and they overwhelmingly support pensions.
The early September poll found that 68% of likely voters favor restoring state pension benefits for public safety workers, teachers, and other public employees. Additionally, 87% of voters 50 and older rated their likelihood of voting at 10 out of 10, compared with 62% of voters under 50. The poll also found that affordability is a major concern, particularly the cost of groceries, gasoline, and health care.
Labor-endorsed Gubernatorial candidate Jonathan Kreiss-Tomkins topped the poll with 40% support, trailed by pension-opponents Bernadette Wilson at 20%, Dave Bronson at 14%, and Treg Taylor at 7%. 18% of respondents remain undecided. This year’s race for the Governor’s seat in Alaska will likely determine the outcome of the movement to reintroduce defined benefits for public employees.
Alaska’s ranked-choice voting system adds unique complications to the closely contested race for governor. The Cook Political Report has now classified the race as a “toss-up” between Jonathan Kreiss-Tompkins and Bernadette Wilson. Of the four candidates, only Kreiss-Tompkins has pledged to prioritize restoring pension benefits on the campaign trail.
Florida AG Sues the New York Times Over Alleged Media Bias
The State Board of Administration of Florida (SBA), which oversees the Florida Retirement System Trust Fund, along with the National Center for Public Policy Research (NCPPR), the billionaire-backed think tank responsible for The Free Enterprise Project, has sued the New York Times to obtain internal company records they claim will point to adverse influence on the state pension system. Led by Florida Attorney General James Uthmeier, the suit aims to determine whether the newspaper’s board has systems in place to oversee editorial standards that he says allow the media giant to sway public opinion. Both the SBA and the NCPPR are Times shareholders.
The petition alleges that the New York Times has a record of factual errors and inconsistent corrections that has allowed its journalistic integrity to be “weaponized within the company to serve the personal agendas of unchecked editors.” The dispute centers in large part on coverage of Israel and the war in Gaza, which Uthmeier says is unduly influencing trustees. The suit references claims from a former NYT employee who raised concerns about anti-Israel bias–allegations that have not been established in a court.
Times spokesperson Charlie Stadtlander said, “Although it is positioned as a corporate governance petition to inspect the company’s books and records, it is a transparent attempt to exert agenda-driven pressure against an independent media organization, level false allegations of bias and chill journalism protected by the First Amendment,” he added. “We will defend against the suit vigorously.”
Uthmeier’s team says their concern is the company’s responsibility to shareholders.
Michigan Corrections Officers Hold Out Hope for a Pension
The Michigan Senate has passed three pension-related bills to replace some of the 2025 legislation that House Speaker Matt Hall held hostage and that Governor Gretchen Whitmer later vetoed.
Senate Bills 1133, 1134 and 1135 seek to add corrections officers, along with conservation officers, motor carrier officers and another law enforcement division, to the State Police Retirement System. Byron Osborn, president of the Michigan Corrections Organization (MCO), the union that represents employees of the Michigan Department of Corrections (MDOC), said he is pleased with the legislation but doubts it will become law.
In an interview with WZMQ19, Osborn said, “We don’t even believe they’re going to be meeting back in session prior to the elections,”. So you’re only talking about the lame duck period now that’s going to be in play, and quite frankly, we don’t have any faith in them getting this done.”
Prisoner-on-prisoner assaults, homicides, and deaths have become more frequent in Michigan’s short-staffed correctional facilities over the last decade, including a recent assault on a mental health care provider at the St. Louis Correctional Facility in Gratiot County. Union leaders cite inadequate staffing as a contributing factor to escalating violence.
NYC Pensions Invest with the AFL-CIO Housing Investment Trust
New York City’s four major public pension funds are placing $300 million into the AFL-CIO Housing Investment Trust, which finances affordable housing construction and historic preservation initiatives across the city. Comptroller Mark Levine announced the move on September 17, noting it as the largest contribution the pension funds have ever made to the trust. Comptroller Levine said the contribution is part of a larger plan to invest $4 billion over four years in New York City housing.
With investments from the Teachers’ Retirement System, New York City Employees’ Retirement System, Police Pension Fund and Fire Pension Fund, the money is expected to bankroll the construction and preservation of at least 10,000 homes over the next five years. Using union labor, the trust’s current projects represent roughly $4.1 billion in total development costs and include new mixed-income and affordable housing, upgrades to existing affordable apartments, and conversions of commercial properties into housing.
City officials say the investment serves two purposes: generating returns for public employees’ retirement funds and addressing the city’s affordable housing shortage.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.